CHEMCHINA EYES MAKHTESHIM AGAN: CROP PROTECTION: Deal would make Chinese firm a global player

CHINA NATIONAL Chemical (ChemChina) is negotiating to buy Makhteshim Agan Industries, an Israeli maker of off-patent agricultural chemicals, in a transaction that would value the company at $2.7 billion. If a deal is worked out, ChemChina would displace DuPont as the world’s sixth-largest producer of agricultural chemicals. Koor Industries, an investment company that now controls 47% of Makhteshim, says it has reached “preliminary principle understandings” on a transaction with the Chinese state-owned firm. Terms call for ChemChina to buy the 53% of Makhteshim shares now publicly traded and another 17% owned by Koor, giving the Chinese company a 70% interest in Makhteshim. Koor would retain a 30% interest. “The deal would be hugely beneficial to the Chinese firm,” says consultant Gautam Sirur of U.K.-based Cropnosis. It would give ChemChina access to markets in Europe and Latin America where Makhteshim is strong. A transaction would also benefit Makhteshim by providing access to ChemChina’s financial reso...